Should You Add Solventum Corp (SOLV) to Your Portfolio?

Pzena Investment Management recently released its third-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. Driven by optimism about AI and a September rate cut, US broad-based indexes surged in the third quarter. The technology sector was the strongest performer, with growth outpacing value. The Pzena Focused Value strategy gained but underperformed the Russell 1000 Value Index, returning 1.1% gross and 0.9% net vs. 5.3% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Pzena Focused Value Strategy highlighted stocks such as Solventum Corporation (NYSE:SOLV). Solventum Corporation (NYSE:SOLV) is a healthcare company that operates through Medsurg, Dental Solutions, and Health Information Systems segments. The one-month return for Solventum Corporation (NYSE:SOLV) was 8.51%, and its shares gained 13.65% over the last 52 weeks. On December 09, 2025, Solventum Corporation (NYSE:SOLV) stock closed at $80.11 per share, with a market capitalization of $13.895 billion.

Pzena Focused Value Strategy stated the following regarding Solventum Corporation (NYSE:SOLV) in its third quarter 2025 investor letter:

“We also initiated a new position in medical device company Solventum Corporation (NYSE:SOLV), a recent spinoff from 3M. Concerns around operational challenges and margin pressure caused by the separation from 3M, in addition to high financial leverage, resulted in an attractive entry point. We expect the company to benefit from self-help opportunities going forward as an independent company and see a clean balance sheet after recently divesting a non-core asset at a premium valuation.”

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Solventum Corporation (NYSE:SOLV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Solventum Corporation (NYSE:SOLV) at the end of the third quarter, which was 37 in the previous quarter. While we acknowledge the risk and potential of Solventum Corporation (NYSE:SOLV) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Solventum Corporation (NYSE:SOLV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Solventum Corporation (NYSE:SOLV) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.